ProStart Level 2
Name
Chapter 3.1 Introduction To Cost Control
Due date
1 point per question unless noted otherwise
Points possible
You are expected to COMPLETE ALL WRITTEN CHAPTER ASSIGNMENTS ON TIME. You may turn the
assignment in early. Not completing the required chapter work will result in a lower class grade and may result in
you being removed from the class at semester. NO EXTRA CREDIT WILL BE GIVEN FOR INCOMPLETE
ASSIGNMENTS.
You need to READ the information in the chapter – Do not just look up the information.
This information will be on the National Restaurant Association Level 1 exam which will also be your semester final.
Answer all questions fully I will not grade the assignment if you don’t follow these directions!
You can email me the completed assignment at dsosa@tfd215.org
Completed assignments will be graded as follows:
Early
3 extra
credit points
On time
37 points
maximum
Late 1 day
30 points
maximum
Late 2 days
26 points
maximum
Late 3 days
23 points
maximum
Late 4 days
19 points
maximum
Late 5 days
1 point
maximum
Objectives: After reading Section 3.1, you should be able to answer the following questions:
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Identify the types of costs incurred by a foodservice business and give examples of each.
Explain the purposes of a budget.
Explain the purpose of a profit-and-loss report.
Identify methods for analyzing profit-and-loss reports.
Explain the purpose of invoices in a foodservice business.
Identify tools to help control costs.
Directions: Fill in the blanks as you read the section in the textbook or listen to lecture or
demonstration.
Cost Control Overview
1. Define Revenue: ____________________________________________________________________________________________________________
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2. Define Cost: _________________________________________________________________________________________________________________
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3. What is the basic principle of cost control? ______________________________________________________________________________
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Types of Costs
1. Complete the chart below 4 pts.
Type of Cost
Food
Description
Variable/Semivariable
or Fixed
Beverage
Labor
Overhead
2. What is the difference between Variable, Semivariable and Fixed cost?
3 pts.
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3. What is the difference between controllable and noncontrollable costs? Give three examples of
noncontrollables. 3 pts.
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Operating Budget
1. Define operating budget: __________________________________________________________________________________________________
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2. List three ways in which an operating budget helps manage an operation.
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(Continued on the next page)
3. Define forecast: _____________________________________________________________________________________________________________
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4. What is historical data?
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5. What is the formula for calculating Average Sales per Customer?
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6. Calculate the Average Sales per Customer using the following information and your formula from question #5
Sales for the month
$64,578
Customers for the month
What is the average sales per customer?
2,966
$
7. Define sales history: _______________________________________________________________________________________________________
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8. What is the purpose of the production sheet?
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9. Define Point-of-Sales (POS) system: ______________________________________________________________________________________
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10. How can the moving average technique help with forecasting?
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(Continued on the back – turn the page over)
Profit-and-Loss Reports
1. What is a profit-and-loss report?
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2. What three thing do the profit-and-loss report show management about the operation? 3 pts.
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3. Define variances: ___________________________________________________________________________________________________________
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Cost-Control Tools
1. What is full –line supplier?
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2. List the ways programs help in controlling cost.
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3. When choose technology for your restaurant, what questions should you try to answer? 2 pts.
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(Continued on the next page)
4. Why would Sherie Valderrama agree that cost control is critical to the success of a restaurant or foodservice
operation?
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5. Given what you just learned in this section, what would you suggest to Chef Kate and Miguel regarding where
they should start their cost-control efforts?
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6. Try to list as many foodservice costs as you can according to whether they are controllable or noncontrollable.
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7. What cost-control tools do you think you would rely on most if you were running a quick-service operation?
Explain your answer.
2 pts.
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